System Integrity and Validation

System Integrity and Validation

Abstract

Kudler Fine Foods is in the process of implementing CAAT to improve efficiencies in the areas of accounts payable, accounts receivable, payroll, inventory, and daily sales. The new software will provide an audit trail and provide cost-effective audits. CAAT validates data to ensure data integrity, validates the system to ensure system integrity, includes audit productivity software to improve audit compliance, document management, groupware for filing sharing, electronic working papers improving efficiency, time and billing software for accuracy improvement. The specialized tools improve the efficiencies in Kudler’s daily operations. CAAT allows management to correct any errors in a timely manner and for the early detection of fraudulent activity.

Kudler Recommendations

The implementation of the new accounting software at Kudler Fine Foods will handle the inventory, accounts payable, accounts receivables, payroll, daily sales, and general ledger functions. In addition to the implementation of the new accounting software, Kudler Fine Foods needs to consider purchasing auditing software to ensure the accuracy and reliability of their data and for the accurate preparation of their financial statements. The auditing software will provide management with the ability to test up to 100% of the company’s transactions. Therefore, the management will not need to rely on a manual audit process, which is time-consuming and cumbersome. In particular, CAATs software offers auditors the ability to examine controls over applications, patterns in data, inconsistencies with data, and tests the compliance of controls in the accounting information system program. The information technology (IT) auditor follows a process when deciding at what point and how to implement CAATs into the audit. The IT auditors view the process as a framework that consists of 10 steps. Validating client applications is the first...